The Hindu Business Line : SBI sees 35% growth in advances to mid-corporates

On a positive note
The drawals of some of the term loans sanctioned earlier would take place in the coming months.
The disbursements would pick up also because several industries are going for expansion.
The bank is introducing several industry-specific products tailor-made for certain segments.

Santanu Sanyal

Kolkata, May 8 State Bank of India (SBI), in the current fiscal, hopes to achieve a significant growth in advances to mid-corporates, i.e. companies having turnover ranging between Rs 50 crore and Rs 1,000 crore or so.

“We’ve projected a growth of about 35 per cent in the current financial year as compared to 21 per cent achieved in 2007-08,” SBI sources told Business Line. As on March 31, the bank’s total outstanding on mid-corporate accounts amounted to Rs 108,000 crore.

Several reasons were offered for the optimism for the current year. The drawals of some of the term loans sanctioned earlier would take place in the coming months. The disbursements would pick up also because several industries were going for expansion. “We foresee no major slowdown in credit demand of the mid-corporates in the current year,” it was observed.

In 2007-08, the growth in SBI’s advances to mid-coporates was recorded in respect of sectors such as power (10 per cent), cotton textiles and iron & steel (nine per cent each), gems and jewellery (eight per cent) and chemicals (seven per cent). This year a good deal of hope is being pinned also on pharmaceuticals, auto ancillaries, engineering and construction companies.

SBI is introducing several industry-specific products tailor-made for certain segments in the mid-corporates. “A beginning has already been made,” said the sources drawing attention to the newly-launched financing scheme for construction equipment such as pay-loaders, dumpers, earth-movers and the like. A few more products were also in the offing, it was pointed out.

The sources conceded that the rising cost of fund was a matter of concern to many of the bank’s mid-corporate accounts. Also, the depreciation of the rupee vis-À-vis US dollar, particularly to those having sizeable exports. “We’re advising them to explore opportunities in non-dollar areas,” the sources added.

Related Stories:
SBI 4th quarter net rises 26%
SBI net grows 70% in Q3 on higher income

More Stories on : Outlook | Public Sector Banks | State Bank of India

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
SHCIL in talks with States for e-stamping

Indian Bank ATM at rly station

Interest rates likely to remain stable for now, says Kamath

Corpn Bank hikes NRE, FCNR rates

SKS Microfinance plans expansion

Call rates close at 5.75-6%

Govt concerned at high-cost bulk deposits raised by PSBs

SBI sees 35% growth in advances to mid-corporates

New S&P role for Ravimohan